Kemira to invest Euro 7 million in production plant in China

Nov 11, 2005. /Lesprom Network/. Finnish Kemira Oyj Friday said it will invest in a production plant for paper chemicals in Yixing, China. The unit will be built in connection with Kemira's existing water treatment chemicals plant, located around 160 kilometers from Shanghai. Kemira said that including the investments in production at the group's Yixing site during next year, its total investment in the production of pulp and paper chemicals and water treatment chemicals in Yixing will total at the level of around Euro 7 million. The production of paper chemicals will be started during the first half of 2006. The investment will strengthen the position of Kemira Chemicals (Shanghai) Co., on the expanding market for pulp and paper chemicals in China, it said. Kemira will step up its sales of pulp and paper chemicals and water treatment chemicals in China many times over during the next few years. The infrastructure, administrative services and utilities of the existing water treatment chemicals plant will be used also for the new production line for paper chemicals. The Yixing plants will employ close on 200 persons after the investment. The main products of the new paper chemicals plant will consist of specialty chemicals for the pulp and paper industry. "The volume of paper production in China comes up to around 50 million tons a year. It has been estimated that production figures will rise steadily for next ten years. A sharp rise in demand for paper chemicals is expected with the anticipated transition towards finer paper qualities and following the increasing number of modern, big paper machines", said Juha Kuikka, managing director, Kemira Chemicals (Shanghai) Co., Ltd. "We are talking about an investment in the expanding new pulp and paper chemical markets, in line with Kemira's strategy. The Kemira Group is the second biggest global supplier in pulp and paper chemicals. As suppliers to paper producers with worldwide markets we are expected to be present on all continents", said Jukka Hakala, export manager, Pulp and Paper Chemicals.